A Buyer in Hong Lok Yue lost HKD3.5 million due to the abandoned transaction. The loss is higher than that in Casa Marina.
The economic prospects of Hong Kong are uncertain, and the unemployment rate has risen to 4.2%, a new high in the past decade. More and more abandoned transactions, price cuts, and transactions with loss appear. Tai Po becomes a severely afflicted area recently. A three-bedroom unit buyer of The Regent in the same district abandoned the transaction after ten days, losing 5% or HKD530,000 in deposit. At the same time, a second-hand transaction for an even-numbered house in Hong Lok Yue was abandoned, and the buyer lost about HKD3.5 million. Besides, The Beverly Hills and Casa Marina in the district successively recorded transactions with loss.
Journalist Leong Yuet Kam
According to the first-hand property transaction records, a buyer of China Overseas's The Regent in Tai Po purchased a three-bedroom unit of Room B, 12th Floor, Block 3, with an area of 736 sq ft, on 13th this month for HKD10.543 million, after the discount for 120-day cash payment. However, the buyer finally decided to abandon the transaction and lost about HKD530,000, which is 5% for the deposit within ten days.
A buyer of The Regent abandoned the transaction and lost the deposit in ten days.
Abandoned transactions also appear in the second-hand property market. The market source points out that an even-numbered house at Hong Lok Yue West Road in Tai Po, in area of 1,596 sq ft and connecting a garden, was sold at the end of last year for HKD29.5 million and the sq ft price was HKD18,484. However, the COVID-19 epidemic outbroke and the global economic sentiment deteriorated. The buyer decided to cancel the transaction before the contract officially takes effect. The abandoned transaction involved HKD2.95 million, and the total loss will be about HKD3.5 million, together with agency fees such as the agency commissions of both parties.
An abandoned transaction in Hong Lok Yue involves a significant loss of HKD3.5 million.
The agent points out that the owner had resold the unit for about HKD31 million, about 5% higher than the transaction price at the end of last year. It is reported that the owner is a couple, and the husband is a foreigner. They bought it for HKD23.5 million in 2015 and put on sale the unit due to the intention to return to hometown.
At the same time, the second-hand transactions of villas with loss have been recorded in successive in the district. Ng Yat-Wing from Centaline expresses that an even-numbered house in The Beverly Hills, with an area of 1,902 sq ft, was sold for HKD19 million including lease, and the sq ft price fell under HKD10,000 to HKD9,989. The original owner purchased the unit in 2007, and the book loss is about HKD2.67 million. According to other sources, an even-numbered villa in Casa Marina Phase I, in an area of 1,896 sq ft, was sold for HKD18.18 million, with the sq ft price at HKD9,589. The original owner bought the unit in 2013, and the book loss exceeds HKD1.6 million.
In other regions, there are also more and more second-hand property transactions with loss. MOUNT PAVILIA in Sai Kung, which was accepted last year, firstly recorded a second-hand transaction with loss. Wan Kam-Keoi from Ricacorp Properties Tsueng Kwan branch expresses that it is middle-rise Room B in Block 8 with an area of 1,836 sq ft, was sold for HKD32.2 million, and the sq ft price was HKD17, 538. The original owner purchased the unit for HKD32.056 million in May 2018 and needs to pay an additional stamp duty (SSD) of 10% because of holding less than three years. However, the stamp duty was paid by the buyer. The original owner made a profit on the book but still lost after including incidental expenses.
The transaction of a low-rise unit in MERIDIAN HILL includes loss of HKD4.9 million.
According to other market sources, Room D, low-rise, Block 2, MERIDIAN HILL, Kowloon Tong, covered an area of 1,542 sq ft and was sold for HKD22.8 million with a parking lot, with the sq ft price at HKD14,786. The original owner is a mainland customer, and bought it for HKD25.363 million in 2010, together with a parking lot for about HKD1 million. The book loss is HKD2.563 million, while the actual loss is about HKD4.9 million calculating the stamp duty and agency commission.
The sale of tiny houses also have a loss. High-rise Room K in Block 1B of UPPER EAST was sold for HKD6.05 million, and the sq ft price was HKD19,707 base on the area of 307 sq ft. The original owner who purchased it in 2016 earns about HKD90,000. But the actual loss is about HKD150,000 after including the commission.
A low-rise unit in Ultima was cut by HKD7.64 million.
Besides, low-rise Room B in Block 5 of Ultima in Ho Man Tin, in area of 1,300 sq ft, had asked for HKD34.84 million, while was cut to HKD27.2 million and sold, with an accumulated price cut of HKD7.64 million or 22%, and the sq ft price is low to HKD20,923. The original owner bought it at HKD25.059 million in 2016, earning book profit of HKD2.141 million or 8.5%. But there is only slight profit after calculating the Buyer Stamp Duty of 15% paid at the time of purchase, the developer's rebate of 70% of the stamp duty, and the cash rebate of 4.5% of the highest.
Information shows that the owner is a mainland customer and has purchased several first-hand properties in Hong Kong in recent years. Among them, units in Fleur Pavilia of North Point and Cullinan West on top of Nam Cheong Station have became foreclosed houses.
On the other side, Cheung Kong recorded 3 abandoned transactions with a large amount in Ocean Supreme, Tsuen Wan. They are Room C on the 52nd floor of Block 1, Room B or 11th floor of Block 3C, and Room B of the 50th floor of Block 5B. The subscription registration for them started yesterday, and 108 applications were received, an over-subscription of 35 times. The units will be resold this morning.
